Is SCO buying HCR?

[David Blackwood]

In article <263DEBAD.9FE at telly.on.ca> evan at telly.on.ca (Evan Leibovitch) writes:
>There is a rumour floating around that HCR, the main distributor of
>Interactive 386/ix in Canada, is about to be bought out by SCO.
>
>If true this would, um, sort of affect the distribution and support for
>Canada and some parts of the US. This could have a major effect on
>Canadians presently using 386/ix.
>
>The rumour apparently is traced to someone within HCR. Is there any
>truth to it?

Yes, it's true.  The following is the text of a press release issued jointly
by SCO and HCR on Monday, May 7, courtesy of the SCO On-line Support system:

        THE SANTA CRUZ OPERATION, INC. TO ACQUIRE HCR CORPORATION


           Toronto Software Firm To Provide Programming Tools,
       Custom Development, And Canadian Presence As SCO Canada, Inc.


       TORONTO, CANADA and SANTA CRUZ, CALIFORNIA (MAY 7, 1990)-
       The Santa Cruz Operation, Inc. (SCO(R)) and HCR Corporation
       today jointly announced that SCO intends to acquire 100% of
       HCR, the leading UNIX(R) System software company in Canada.
       HCR will run as an independent subsidiary company, and will
       change its name to SCO Canada, Inc.  The transaction is
       subject to completion of legal review and final shareholder
       approval.

       According to SCO president and co-founder Larry Michels,
       ``This will benefit SCO in three areas.  We will strengthen
       our position in programming tools, particularly under Open
       Desktop, our complete graphical operating system for 386 and
       486 computers.  Second, we will increase our ability to
       supply OEM and corporate contract-development services and
       consulting.  SCO's increasing penetration of OEM and large
       corporate accounts has increased the demand for these
       services.  Finally, HCR will also provide a direct SCO
       presence in Canada, thereby establishing SCO's unquestioned
       leadership in this growing market.''

       Doug Michels, SCO executive vice president and co-founder
       said, ``I've known HCR and its management for years, and I
       have always respected their technical excellence and strong
       development management.  Our goal in the transaction is to
       obtain the services of a really talented group as well as to
       acquire additional technology and market presence.''

       HCR president Michael Tilson said, ``We are delighted to
       join with SCO.  We've always had superb abilities in UNIX
       System software development and programming tools.  By
       aligning ourselves with the world's market leader in open-
       system software, we vastly increase our scope.''

       Tilson added that the merger will expand opportunities for
       employees, shareholders, and customers.  He said, ``Our
       company has had a warm, personal relationship with SCO for
       some time.''

       Tilson will continue to head the Toronto operation while
       becoming a vice president of SCO. HCR's existing management
       structure will remain in place, and all current employees
       will retain their positions.  Significant expansion of all
       groups in Toronto is likely in the coming year.

       HCR provides a variety of programming tools products in the
       UNIX System marketplace, most notably HCR/C++, an object-
       oriented programming language, and dbXtra, an advanced
       debugging and program development tool which works with
       HCR/C++.  HCR will take on a world-wide mandate for SCO in
       many areas of programming tools development.

       HCR provides custom UNIX System software development
       services to major clients, including IBM, Intel, and other
       major computer manufacturers. HCR has been increasingly
       active with corporate as well as OEM clients.  Under the new
       arrangement, HCR will continue to service and add to its
       existing client base while also focusing on OEM, corporate,
       and government users of SCO UNIX System V and Open Desktop.

       HCR is the leading UNIX System software company in Canada,
       and supplies packaged UNIX systems for Intel 386 and 486-
       based computers to resellers, VARs, and systems integrators.
       HCR will now become the Canadian arm of SCO.

       According to HCR's director of packaged software support
       Michael Monahan, ``We will continue to service our current
       Canadian customer base for as long as is necessary to meet
       their requirements.  When you add product lines, it's
       important to ensure that no customer is at a disadvantage.''

       As SCO's new subsidiary, HCR will take over SCO's Canadian
       customer base.  The only change these customers will observe
       over time will be an improvement in SCO's Canadian profile
       and market sensitivity. SCO will be able to provide more
       responsive distributor and reseller support in Canada.
       Tilson commented, ``It is very important to provide
       consistent terms, conditions and support to our SCO reseller
       base.  We think the only surprises customers will see will
       be pleasant ones.''

       Detailed financial terms of the acquisition were not
       announced. Company officials said that the transaction would
       consist of a share swap with a multi-million dollar value.
       At the completion of the transaction, SCO will own 100% of
       HCR Corporation.

       The Santa Cruz Operation, Inc., is a privately held company
       recognized internationally as the worldwide leader in open-
       system software solutions.  SCO offers a wide range of UNIX
       System V software solutions, training, and support services
       for standard hardware platforms.  To date, SCO has shipped
       over 300,000 UNIX systems - more than any other supplier.
       Founded in 1979, SCO fields a staff of over a thousand
       between its Santa Cruz, California, Washington D.C., and
       London offices, including one of the largest UNIX System
       technical teams in the world.

       HCR Corporation is a privately held company with
       headquarters in Toronto, Canada.  Founded in 1976, HCR
       develops system software for the expanding UNIX System
       market.  HCR's products include both custom and packaged
       software in the areas of UNIX System development tools,
       operating systems, and networking.  HCR serves a worldwide
       customer base of manufacturers, developers, and end users.

                                 # # #

       SCO is a registered trademark, and The Santa Cruz Operation
       and Open Desktop are trademarks of The Santa Cruz Operation,
       Inc.
       UNIX is a registered trademark of AT&T in the USA and other
       countries.
       HCR/C++ and dbXtra are trademarks of HCR Corporation.
       IBM is a registered trademark of the International Business
       Machines Corporation.
       Intel is a registered trademark of Intel Corporation.


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